Consider a european call option priced at 15 with a strike, Business Economics

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Consider a european call option priced at 15 with a strike

Consider a European call option priced at $15 with a strike of $35 and a time to maturity of 1 year. The current stock price is $40 and the risk free rate is 5% p.a.. An otherwise equivalent European put is priced at $5. Outline an appropriate arbitrage strategy.

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Business Economics: Consider a european call option priced at 15 with a strike

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Business Economics: Consider a european call option priced at 15 with a strike

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